FXCM trading products: Your Comprehensive Guide to Trading
Understanding the range of FXCM trading products is crucial for any potential investor. The availability of these products is often dictated by the specific global entity of the FXCM Group that manages your trading account.
FXCM Review: Diverse Investment Offerings
FXCM provides a growing selection of over 300 CFDs, which include fractional shares, and 44 forex pairs. Additionally, FXCM offers access to exchange-traded securities across 43 exchanges spanning Europe, North America, and the Asia-Pacific region. This broad offering is a key part of the FXCM trading products.
FXCM Cryptocurrency Trading
For those interested in FXCM cryptocurrency, trading is available through CFDs. It’s important to note that direct trading of the underlying asset (e.g., buying actual Bitcoin) is not supported. Also, crypto CFDs are not available to retail traders from any broker’s U.K. entity or to U.K. residents.
Here’s a summary of some key investment products available:
- Forex Trading (Spot or CFDs): Yes
- Tradeable Symbols (Total): 441
- Forex Pairs (Total): 44
- U.S. Stock Trading (Non CFD): Yes
- Int’l Stock Trading (Non CFD): Yes
- Social Trading / Copy Trading: Yes
- Cryptocurrency (Physical): No
FXCM Forex Spreads and Commissions
When considering FXCM trading products, it’s essential to look at the costs involved. FXCM’s pricing for forex trading tends to be slightly higher than the industry average.
For standard accounts, using data from April 1, 2020, to June 30, 2020, all-in spreads on the EUR/USD at FXCM were reported at 1.4 pips. While this is above the industry average, it’s worth noting that Q2 2020 experienced increased market volatility due to the COVID-19 pandemic.
Active Trader Discounts and Requirements
FXCM offers an Active Trader Rebate Program (not available in the U.K. or EU) with five tiers. Depending on the tier, traders can receive rebates ranging from $5 per million traded (Tier One) to $25 per million traded (Tier Five).
While beneficial, some competitors like Tickmill and FP Markets provide more competitive pricing for high-volume traders. For instance, FXCM’s commission-based pricing, based on Q2 2020 data for the EUR/USD, showed low underlying spreads of 0.2 pips during peak hours. However, after including the commission-equivalent of $0.90 per mini lot, the effective spread was closer to 1.1 pips.
Requirements for each tier can vary by FXCM Group entity. In the U.K., for example, a $25,000 account balance and at least $50 million (or 500 lots) in monthly volume can reduce the commission per side to $3 ($6 round-turn). This brings the effective spread to 0.8 pips, based on an average core price of 0.2 pips (Q2 2021 data for EUR/USD). For volumes exceeding $150 million monthly, commissions drop further to $5 per round turn, resulting in an effective spread of 0.7 pips. Even deeper discounts are available for those trading over $500 million per month.
FXCM CFD Trading and Execution Methods
Beyond forex, FXCM CFD trading encompasses a wide array of assets. FXCM provides different execution methods through its order types. “At Market” orders carry potential for slippage, while “Market Range” orders are less prone to slippage but can be rejected if the desired price or range is no longer available. Limit orders, conversely, are more likely to experience positive slippage.
The ability to select the execution type per order is a favorable feature, distinguishing it from brokers who tie execution methods to account types. This flexibility enhances the experience of using FXCM trading products.
Execution Statistics and Price Improvement
FXCM transparently publishes detailed monthly execution statistics, showing the percentage of orders filled with positive or negative slippage. Over an eight-month period ending August 31, 2021, FXCM reported average price improvements on at least 23.78% of executed orders each month, compared to negative slippage on only 12.69% of total orders. The majority, 63.54%, experienced zero slippage. According to their spread widget, effective spreads on EUR/USD in August 2020 were closer to 1 pip, largely due to the likelihood of price improvements, especially on limit orders.
FXCM Stock Trading and Account Details
For those interested in FXCM stock trading, the platform offers access to both U.S. and international stock markets, in addition to its robust CFD offerings. The minimum initial deposit to get started with FXCM trading products is generally low, starting from $50.
Key account features include:
- Minimum Initial Deposit: Starts from $50
- Average Spread EUR/USD – Standard: 1.38 (Q2 2022)
- All-in Cost EUR/USD – Active: 1.38 (Q2 2022)
- Active Trader or VIP Discounts: Available
Verdict
FXCM offers a comprehensive suite of trading products, including robust forex, CFD, and stock trading options. While standard forex spreads might be slightly above the industry average, active traders can benefit from tiered rebate programs. The transparency in execution statistics and the likelihood of price improvements add value for traders. However, traders interested in FXCM cryptocurrency should note that only CFD trading is available, with regional restrictions. Overall, FXCM provides a strong platform for diverse trading needs, making its FXCM trading products appealing to a wide range of investors.
